Feed-in tariffs (FIT) are fixed electricity prices that are paid to renewable energy (RE) producers for each unit of energy produced and injected into the electricity grid. The payment of the FIT is guaranteed for a certain period of time that is often related to the economic lifetime of the respective RE project (usually between 15-25 years). Another possibility is to calculate a fixed maximum amount of full-load hours of RE electricity production for which the FIT will be paid. FIT are usually paid by electricity grid, system or market operators, often in the context of Power purchasing agreements (PPA).

Currently, in most RE support schemes, the level of FIT is determined on the basis of a calculation of the levelized cost of electricity (LCOE) produced from RE. This allows the RE investor to recover the different costs (capital, O&M, fuel, financing) while realizing a return on his investment that depends on the assumed financing costs. In some cases, FIT have been calculated on the basis of avoided costs for the electricity system or the society, including e.g. environmental externalities. Thirdly, it is also possible to determine the FIT level by means of a tendering mechanism. (Source: Energypedia)

The Global Gateway is a new European strategy to boost smart, clean and secure links in digital, energy and transport sectors and to strengthen health, education and research systems across the world.

An Energy Service Company, or ESCO, is a company that offers energy services which may include implementing energy-efficiency projects (and also renewable energy projects) and in many case on a turn-key basis. The three main characteristics of an ESCO are:

1. ESCOs guarantee energy savings and/or provision of the same level of energy service at lower cost. A performance guarantee can take several forms. It can revolve around the actual flow of energy savings from a project, can stipulate that the energy savings will be sufficient to repay monthly debt service costs, or that the same level of energy service is provided for less money.
2. The remuneration of ESCOs is directly tied to the energy savings achieved;
3. ESCOs can finance, or assist in arranging financing for the operation of an energy system by providing a savings guarantee.

Therefore ESCOs accept some degree of risk for the achievement of improved energy efficiency in a user’s facility and have their payment for the services delivered based (either in whole or at least in part) on the achievement of those energy efficiency improvements.

The typical ESCO project includes the following elements:

• Site survey and preliminary evaluation;
• Investment grade energy audit;
• Identification of possible energy saving and efficiency improving actions;
• Financial presentation and client decision;
• Guarantee of the results by proper contract clauses;
• Project financing;
• Comprehensive engineering and project design and specifications;
• Procurement and installation of equipment; final design and construction;
• Project management, commissioning and acceptance;
• Facility and equipment operation & maintenance for the contract period;
• Purchase of fuel & electricity (to provide heat, comfort, light, etc.);
• Measurement and verifications of the savings results;
• Operation and maintenance.

Decarbonisation is a reduction in carbon dioxide emissions. Decarbonisation is also the pathway to – and often discussed in conjunction with – concepts such as net zero emissions, carbon neutrality and a low-carbon economy. Top sources of GHG emissions, in the world, include transportation, electricity production, industry, commercial and residential buildings, agriculture, and land use/forestry.

The increased process of carbon dioxide emissions has a negative impact on agriculture and food production, increased risk of extreme weather conditions, increased interruption of the supply chain and other – often irreversible – effects.

Ideally, decarbonisation is achieved without compromising overall efficiency, quality, competitiveness or growth. However, achieving decarbonisation for a country, city, organisation or individual is not easy.

Broadly speaking, climate change and its huge impacts are driving the push for decarbonisation. Rapid decarbonisation is needed on a global scale to prevent the planet from warming by more than 1.5°C above pre-industrial levels, as per the Paris Agreement.

In addition to supply chain, health and agricultural concerns, rising fuel costs, increased energy demand and urbanisation, and diminishing fossil fuel resources are also contributing to driving the shift towards a low-carbon economy. 

New solutions to achieve decarbonisation are constantly being developed. Some popular methods are as follows:

• Reduction of emissions
• A switch to fossil fuel alternatives in the form of renewable energy sources (e.g., solar and wind energy) or low-carbon fuels and energy sources
• Expanded renewable energy use by improving availability and developing energy storage
• Increased energy efficiency and reduced waste at and in power plants, production processes, services, buildings, and end-use products.

Energy statistics refers to collecting, compiling, analysing and disseminating data on commodities such as coal, crude oil, natural gas, electricity, or renewable energy sources (biomass, geothermal, wind or solar energy), when they are used for the energy they contain.

The energy balance is the most complete statistical accounting of energy products and their flow in the economy. The energy balance allows users to see the total amount of energy extracted from the environment, traded, transformed and used by end-users. It also allows seeing the relative contribution of each energy carrier (fuel, product). The energy balance allows studying the overall domestic energy market and monitoring impacts of energy policies. The energy balance offers a complete view on the energy situation of a country in a compact format, such as on energy consumption of the whole economy and of individual sectors.

The energy balance presents all statistically significant energy products (fuels) of a country and their production, transformation and consumption by different types of economic actors (industry, transport, etc.). Therefore, an energy balance is the natural starting point to study the energy sector. The energy balance is a multi-purpose tool to:

• Provide comprehensive information on the energy supply and demand in order to understand the energy security situation, the effective functioning of energy markets and other relevant policy goals, as well as to formulate energy policies;
• Provide the essential basis for calculating various indicators, including indicators monitoring progress towards Energy Union and Europe 2020 targets (energy efficiency indicators, share of renewable energy, energy dependency, etc.);
• Ensure comparability of statistical information between different reference periods and between different countries/regions;
• Provide data for the calculation of greenhouse gas emissions from fuel combustion;
• Serve as a quality tool to ensure completeness, consistency and comparability of energy statistics;
• Provide an input for modelling and forecasting.

The concept of an energy balance is an accounting framework for the compilation, reconciliation and understanding of data on all energy products entering, exiting and used within a country (territory).

Liquid biofuels include all liquid fuels of natural origin (e.g. produced from biomass and/or the biodegradable fraction of waste), suitable to be blended with or replace liquid fuels from fossil origin. In energy statistics, liquid biofuels is a product aggregate equal to the sum of biogasoline, biodiesel, bio jet kerosene and other liquid biofuels.

Biogas is a gas composed principally of methane and carbon dioxide produced by anaerobic digestion of biomass or by thermal processes from biomass, including biomass in waste. In energy statistics, biogas is a product aggregate equal to the sum of landfill gas, sewage sludge gas, other biogases from anaerobic digestion and biogases from thermal processes.

Solid biofuels covers solid organic, non-fossil material of biological origin (also known as biomass) which may be used as fuel for heat production or electricity generation. In energy statistics, solid biofuels is a product aggregate equal to the sum of charcoal, fuelwood, wood residues and by-products, black liquor, bagasse, animal waste, other vegetal materials and residuals and renewable fraction of industrial waste.

Biofuels are liquid or gaseous transport fuels, such as biodiesel and bioethanol, made from biomass. Biofuels used for non-energy purposes are excluded from the scope of energy statistics (for example, wood used for construction or as furniture, biolubricant for engine lubrication and biobitumen used for road surface).

Biofuels can be split up into three categories:

• Solid biofuels (fuelwood, wood residues, wood pellets, animal waste, vegetal material, …)
• Liquid biofuels (biogasoline, biodiesel, bio jet kerosene, …)
• Biogases (from anaerobic fermentation and from thermal processes).